Blue Sky Alternative Investments Ltd (ASX: BLA) announced on 28 September 2018 that its securities will be placed in trading halt. In the past one year the company placed its securities in trading halt at many occasions. However, on this occasion it is expected to be a positive for the long-suffering shareholders of the company. According to the announcement, the trading halt is requested pending an announcement by the company about the details of a material transaction with Oaktree Capital Management which is a leading alternate asset management company. In the Blue Sky’s strategic update, it is mentioned that that the company is progressing with a strategic partnership with Oaktree Capital which will represent a significant vote of confidence in Blue Sky’s strategic direction, investment teams and newly implemented operational infrastructure. The key terms of capital partnership with Oaktree Committee includes an investment in Blue Sky of around $60 million through a convertible note facility and the proceeds will be used to fund co-investment and working capital requirement. The conversion right is capped at 30 percent of the issued share capital and aspects of the conversion rights are subjected to shareholders approval. Blue Sky’s shares are expected to return for trading by 1 October 2018.
In FY2018, the company’s net loss after tax was $85.6 million which is reflecting a significant disruption to operations, asset review and business restructure. The operating revenue of the company decreased from $68 million in FY2017 to $24.9 million in FY 2018. Due to the business disruptions and consequential restructure the operating expenses of the company increased from $46.1 million to $98.2 million.
In FY2019, the company is planning to complete the corporate structure and engage with strategic partners. The company is planning to establish group investment committee and have a consistent in investment discipline across the globe. By the end of 30 June 2018, the company was having cash of $40 million with no corporate debt.
BLA shares last traded at $1.585 with a market capitalization of $122.89 million.
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